PRU 3.13.19

Past version: effective from 21/10/2015 - 20/10/2015
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(1) In making the deductions required pursuant to Rules 3.13.7(c) and (h), an Authorised Person must not deduct the items listed in (a) and (b), where in aggregate they are equal to or less than 15% of CET1 Capital:
(a) deferred tax assets that are dependent on future profitability and arise from temporary differences, and in aggregate are equal to or less than 10% of the CET1 items of the Authorised Person calculated after applying the following:
(i) adjustments referred in Rules 3.13.5 and 3.13.6; and
(ii) deductions referred to in (a) to (g) and (i) to (j) of Rule 3.13.7, excluding deferred tax assets that rely on future profitability and arise from temporary differences.
(b) where an Authorised Person has a significant investment in a Relevant Entity, the direct and indirect holdings of that Authorised Person of the CET1 Capital instruments of those entities that in aggregate are equal to or less than 10% of the CET1 items of the Authorised Person calculated after applying the following:
(i) adjustments referred in Rules 3.13.5 and 3.13.6; and
(ii) deductions referred to in (a) to (h) and (i) to (j) of Rule 3.13.7 excluding deferred tax assets that rely on future profitability and arise from temporary differences.
(2) Items that are not deducted pursuant to (1) must be risk weighted at 200% and subject to the requirements of Chapter 4, as applicable.